Risks of the Dual Role Inspection Model: Lessons from the Collapse of Assent BC

The recent insolvency of Assent Building Control Compliance Ltd (Assent BC) has sent ripples through the construction industry, highlighting significant risks associated with the dual role inspection model adopted by some warranty providers. This model, where a single inspector carries out both building control and warranty inspections, has long been promoted as a cost-saving measure. However, recent events demonstrate that the apparent efficiency may come with serious consequences for developers and clients.

Possible Consequences for Developers

Assent BC has ceased trading, leaving many projects suddenly without an appointed Registered Building Control Approver (RBCA). In some cases, developers may now be forced to revert to local authority building control. While the full scope of the impact is still emerging, the potential consequences are clear:

• Project delays and additional costs: Developers may face delays, extra fees, or the need to undergo fresh inspection regimes.
• Regulatory intervention: The regulator has issued emergency guidance and official notices to assist affected projects.

These issues illustrate the fragility of relying on a single entity to carry out multiple inspection roles.

Increased Risk for Developers and Warranty Providers

For warranty providers using a dual role model, the collapse of a building-control provider exposes a hidden vulnerability. If the inspector responsible for both regulatory and warranty inspections becomes unavailable, the warranty side of the project is left exposed. This increases the risk profile for both developers and insurers, creating potential liabilities, duplicated costs, and delays.

In short, while using one inspector may seem cost-effective, this event demonstrates the precarious position it can place clients in.

Why Separation of Duties Matters

ABC+ Warranty has long maintained a clear separation of duties between building control and warranty inspections. Chartered building surveyors conduct all warranty and latent defect inspections independently of the building-control approver.

This approach mitigates conflicts of interest, protects clients, and ensures oversight remains robust, even if unforeseen events affect one side of the inspection process.

The Assent BC situation reinforces the importance of this model. Developers and clients should carefully evaluate the inspection approach of their warranty providers and consider whether apparent short-term savings are worth the long-term risks.

Key Takeaways

The collapse of Assent BC serves as a stark reminder that efficiency should not come at the expense of security. Dual role inspection models may appear to simplify processes and reduce costs, but the potential consequences, including delays, additional expenses and compromised oversight, highlight why separation of duties remains the industry standard for safeguarding both developers and clients.